Very few assets, if any, have outperformed Bitcoin (CRYPTO: BTC) over the last decade. Now, as this top cryptocurrency boasts a market capitalization of $1.3 billion and is constantly in the top financial news, investors have no choice but to pay attention.

But you might be wondering if Bitcoin is still worth buying, even though it’s close to its all-time high price. Here are three reasons why I still believe it is a smart decision to add this digital asset to your portfolio.

Fixed supply

Perhaps the most attractive feature of Bitcoin is its fixed supply limit. There will only be 21 million coins in circulation, a limit that is written in the software code. And with continuous halvesthe inflation rate continues to decline.

This fixed supply contrasts sharply with many other asset classes whose supply can increase. Companies can raise more capital and issue more bonds. Gold miners may invest aggressively in exploring previously uneconomic areas if the price of the metal rises high enough. In other words, supply can change to meet demand.

This is not the case with Bitcoin. Unless more than half of the blockchain nodes voted to change the supply cap – which is unlikely given that it would basically hurt the value of the entire network – the situation will remain the same.

Bitcoin’s strongest supporters see it as a direct competitor to the current monetary system. Central banks have historically increased the supply of fiat currencies while decreasing purchasing power. Bitcoin is a solution to this problem.

Seal of approval

Another reason to buy Bitcoin is related to a development that happened this year. I’m talking about the long-awaited approval of spot ETF products. With these investment vehicles now on the market, investors can gain price exposure to Bitcoin in a convenient way. There is no need to open a crypto wallet or manage custody. It can be purchased directly from the main brokers.

This is especially useful for institutions that want to access Bitcoin securely. The approval of these ETFs can be seen as a regulatory stamp of approval from the Securities and Exchange Commission. The hope is that more capital will flow into the asset.

So far, there have been inflows of $12.1 billion into ETFs. And since the approval date on January 11, the price of Bitcoin has soared 43%, a positive indication of increased demand.

Infrastructure expansion

Bitcoin is about 15 years old. This is tiny in the grand scheme of things, as there are companies that have been around for a century or more. Therefore, most people probably see the digital asset as a very new and risky asset that will eventually disappear, calling it a Ponzi scheme or fake Internet money.

The story continues

However, we cannot ignore the growing list of financial products and services involved in the Bitcoin ecosystem. The previously mentioned Bitcoin ETFs fall into this category. Numerous start-ups are working to drive long-term Bitcoin adoption, focusing on energy, gaming and artificial intelligence.

There is also a well-known company, fintech company Block, which is working on ways to increase the utility of Bitcoin. Whether that means facilitating payment mechanisms or simply making it easier for people to buy, hold, or sell Bitcoin, crypto is slowly integrating more and more into today’s financial system.

Bitcoin can be compared to the early days of the internet. No one knew what the effects would be over time, but with the help of various platforms and applications built on top of it, adoption expanded enormously. It’s hard to imagine modern life without it nowadays. And Bitcoin could be the next big game changer.

Investors looking to buy Bitcoin should consider its fixed supply, regulatory seal of approval, and expanding infrastructure.

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Neil Patel and its clients do not have a position in any of the stocks mentioned. The Motley Fool has positions and recommends Bitcoin and Block. The motley fool has a disclosure policy.

3 reasons to buy Bitcoin like there’s no tomorrow was originally published by The Motley Fool

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